Navient Corp (NAVI) Falls On Guidance Cut: Did Hedge Funds See It Coming?

How have hedgies been trading Navient Corp (NASDAQ:NAVI)?

According to hedge fund experts at Insider Monkey, Leon Cooperman‘s Omega Advisors had the number one position in Navient Corp (NASDAQ:NAVI), worth close to $166.3 million from a holding of 8.18 million shares, amounting to 2.7% of its total 13F portfolio. Coming in second was D.E. Shaw & Co., L.P., led by David E. Shaw, holding a $152.8 million position of 7.52 million shares; the fund had 0.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism consist of Cliff Asness’ AQR Capital Management, Michael Blitzer’s Kingstown Capital Management, and Patrik Brummer’s Zenit Asset Management AB.

Since Navient Corp (NASDAQ:NAVI) has witnessed bearish sentiment from the smart money, it’s safe to say that there were a few hedge funds who sold off their positions entirely by the end of the first quarter. It’s worth mentioning that Neil Chriss‘ Hutchin Hill Capital dumped the biggest investment of the “upper crust” of funds tracked by Insider Monkey, totaling about $28.14 million and made up of 1.3 million shares. Malcolm Fairbairn’s fund, Ascend Capital, also sold off its stock, 328,716 shares in all, worth about $7.1 million.

Based on these trades made by hedge funds in the first quarter and the fact that the firm has cut its guidance for both the second quarter and the full 2015 fiscal year, we do not recommend buying Navient Corp (NASDAQ:NAVI) shares at the moment.

Disclosure: None